Countdown to Unemployment Cliff, Implementation of State Unemployment Insurance Overhaul

As June 30 approaches so too does the unemployment cliff. For nearly a month, the Tarheel Workers campaign[1] has been highlighting the impending implementation of House Bill 4 that dismantled the unemployment insurance system and will result in the loss of federal emergency unemployment compensation. Immediately, an estimated 70,000 jobless workers in the state will lose access to the federal program as a result of state policymaker’s rush to implement the drastic cuts to state unemployment insurance benefits.[2]

Far more will be impacted though including future unemployed workers, businesses and the broader economy. The focus has rightly been on the unnecessary and significant loss of federal emergency unemployment compensation in North Carolina. But in the days ahead of the implementation of the most drastic changes to a state unemployment insurance system in the nation, we aim to highlight what this new, deformed system will mean for our communities and families.

North Carolina will no longer have an unemployment insurance system in the middle of the pack but will fall to the bottom of all states.

North Carolina will reduce the maximum benefit amount by approximately 34 percent.

North Carolina will restrict eligibility by eliminating access to unemployment insurance for workers who quit for a range of family or health reasons.

North Carolina will not implement forward financing, and instead reduce the effectiveness of the unemployment insurance system to protect the economy in downturns.

North Carolina will not see job creation as a result of its changes to unemployment insurance system and could, in fact, see economic challenges.